How To Buy Ethereum Instantly In May 2024

While Bitcoin is the top cryptocurrency based on the value of its coins in circulation, Ethereum is no slouch. With a market capitalization of over $429.82 billion as of March 27, 2024, it’s the second leading form of cryptocurrency and has support from business leaders like Mark Cuban. 

Investors expected the Dencun upgrade to boost the price of Ethereum, but to their disappointment, Ethereum declined by around 4%. 

What’s more, it’s been a profitable investment choice. If you invested $1,000 in Ethereum in August 2015, your investment would be worth a staggering $2.23 million almost six years later.

Here’s how to get started buying Ether, the official name of the token more commonly called Ethereum because of its association with the Ethereum platform that it powers.

Where To Buy Ethereum? 

Investors can purchase Ethereum on any cryptocurrency exchange, but remember that it should be registered by the Financial Intelligence Unit in India. Select a platform that has a simple user interface and supports Ethereum trading pairs. Also, watch out for platforms that have reasonable trading fees. 

Let us see some cryptocurrency exchanges in India to buy Ethereum:

CoinDCX: It is considered one of India’s safest and most transparent trading platforms. An investor takes about fifteen minutes to sign up and purchase Ethereum. It has more than 500 crypto assets. 

CoinSwitch: It is among the top crypto exchanges in India, boasting over 20 million registered users. With a board selection of over 100 cryptocurrencies, CoinSwitch is particularly suitable for beginners. On this platform, you can start investing in Ethereum with as little as INR 100.

WazirX: It is a trusted and rapidly growing platform for cryptocurrency trading in India. With over 15 million users, it has become one of the most reputable exchanges in the country. WazirX offers access to a wide selection of over 300 cryptocurrencies for investment purposes.

Mudrex: It is another top-tier crypto exchange in India. Users of Mudrex benefit from zero fees on crypto deposits. The platform has over one million invested users and adheres fully to both Indian and European regulatory standards.

All the above exchanges are registered with FIU-India. Check out more: Best Crypto Exchange In India For 2024. 

How To Buy Ethereum in May 2024

Investing in Ethereum may be easier than you think. Here’s how to get started in just five steps:

1. Determine Your Level of Risk

There’s no getting around it; buying Ethereum can be a gamble. While all investments have some risk, cryptocurrencies are especially vulnerable to price fluctuations. Just think about the impact a couple of hundred characters can have on crypto pricing: After Elon Musk tweeted that Tesla would no longer accept Bitcoin as payment, the coin’s value tumbled 15%.

Although Ether has had impressive returns in the past, it’s also had some significant crashes, sometimes in astonishingly short amounts of time. Notably, it went from a high of almost $3,911 per coin in May 2021 to less than $1,981 in June 2021. If you had bought in at its high, you’d be sitting with half that value just a month later. That’s some pretty extreme volatility. 

That’s why it’s important to consider your risk tolerance and the diversity and stability of your investment portfolio before buying Ether. Experts recommend never investing more in crypto than you can afford to lose.

2. Choose a Crypto Exchange

Buying Ether is a little more complicated than buying stocks or mutual funds through your current brokerage account. Cryptocurrencies aren’t traded on major exchanges like the National Stock Exchange (NSE), and many brokerages don’t offer crypto investing.

To buy crypto, you have first to create an account on a crypto exchange. Practically speaking, it’s just like the brokerage platforms you may be more familiar with: Crypto exchanges allow buyers and sellers to exchange fiat currencies—like dollars—for cryptocurrencies like Ethereum, Bitcoin or Dogecoin. 

If you don’t already have a crypto exchange in mind, look at our list of best cryptocurrency exchanges to find the one that’s right for you. Though some exchanges’ trading platforms get complex, most offer a simple purchase interface for beginners, though it may charge higher fees than their trading platform.

A couple of key points: When choosing an exchange, make sure it offers a crypto wallet to store your investments. The vast majority do, but if yours doesn’t, you’ll need to get one of your own.

If you’re a beginner, you can always use platforms like CoinDCX and WazirX. Use a crypto exchange platform that is registered with FIU India. This will greatly simplify the crypto purchasing process, but it comes at a hidden cost: You can’t withdraw your Ethereum investment to put it in a third-party wallet or use it to pay for online purchases. 

Using one of these simplified platforms will mean your crypto can only be traded within the platform you buy it on. So you’d need to cash out of that platform and then rebuy it on a crypto exchange to hold it in a separate wallet.

3. Fund Your Account

Before you can buy Ethereum through a crypto exchange, you have to fund your account. In most cases, you’ll deposit money from a bank account, like your checking or savings account. You can also generally complete wire transfers, use a debit card, or deposit money via net banking.

When choosing a funding method, review the crypto exchange’s fees; they can vary based on the method. For example, wire transfers are free on CoinDCX, but the platform charges 0.5% on net banking. 

4. Buy Ethereum

When buying stocks, mutual funds or exchange-traded funds (ETFs), you’re limited by market hours. For example, NSE’s trading hours are 9:00 a.m. to 2:00 p.m. and the exchange is closed on weekends and certain holidays.

Cryptocurrencies like Ethereum work very differently: Because they’re decentralized currencies, you can buy and sell them around the clock.

To purchase Ethereum, enter its ticker symbol—ETH—in your exchange’s “buy” field and input the amount you want to buy. If you don’t want to buy a whole Ethereum token or don’t have enough money in your account for a full coin, you can purchase a fraction of one. For example, if Ethereum is $2,000 and you invest $100, you will purchase 5% of an Ether coin. This is just like when you purchase a fractional share of a stock.

5. Store Your Ethereum

After your purchase of Ethereum has been processed, you have to store your cryptocurrency. While some platforms will store it for you, others opt to store their investments to reduce the likelihood of losing their crypto to a hack. This is understandable, but it’s also important to note that most major exchanges insure their clients’ holdings and often store most of their assets offline to prevent massive theft. 

What’s more, historically exchanges that have been hacked have reimbursed any losses. But if you want peace of mind surrounding your crypto, you can choose to move it to one of two types of third-party wallets:

• Hot Wallet: A hot wallet is connected to the internet and can be accessed from a computer or smartphone. They’re convenient and are usually provided by cryptocurrency exchange platforms at no additional cost, though you can also use your own if you’d prefer having your crypto off of the exchange. However, they’re at a higher risk of security breaches because they’re still connected to the internet.
• Cold Wallet: Cold wallets, meanwhile, are external devices completely disconnected from the internet. Depending on the type you choose, they usually cost between INR 1,500 and INR 39,000, though even more expensive versions are available. While cold wallets are less convenient than hot wallets—you have to manually connect them to the internet each time you want to access your crypto—they’re safer and may make sense if you own a significant amount of Ethereum or other cryptocurrencies.

How Much Is Ethereum Worth?

As of March 27, 2024, ETH is trading at $3,651, with a market capitalization of $429.82 billion. The 24-hour volume is 3.74%. Its all-time high was two years ago at $4,891 and has increased by 108.20% from the past year. 

Investors anticipated a jump in ETH prices following the Dencun upgrade, however, to their dismay, the prices declined. According to CoinDCX, Ethereum’s price is expected to fluctuate between $3400 and $3600 in March 2024, highly influenced by market sentiment and the Ethereum Dencun Upgrade. It anticipates a rebound and a possibility of a surge towards $4000 as the Bitcoin halving event approaches in April 2024.

How To Sell Ethereum in May 2024

To sell your Ethereum, return to your crypto exchange and enter the amount you want to sell.

If you’re selling crypto, though, you may want to consult a tax professional. Despite its decentralized nature, crypto is taxable in the government’s eyes. Your sales profits are typically subject to capital gains taxes and can significantly affect how much you owe the IT department come tax time.

Should You Invest in Ethereum?

Ethereum is extremely popular, with a circulating supply of around 120 million as of March 27, 2024. But just because it’s one of the more well-known cryptocurrencies doesn’t mean it’s right for you.

Before buying a volatile investment like Ether, you’ll want to ensure you’ve researched and your finances are in good shape. Ideally, you should have a large emergency fund, max out your retirement accounts and have minimal debt. Even if you can check all those boxes, it’s important to diversify your portfolio, so only a portion of your investments should be in Ethereum and other cryptocurrencies.